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International Finance

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International Finance

Assignment 1

Nine Dragon Paper NDP case study

By: Ehab M. Helmy
Marina Emad

Supervised By: Dr. Abir Zein
How Mrs. Cheung does think? What does she believes in when it comes to building her business?

She always thinks ahead and has a strong long-term vision of where her company should be. She has strong industry knowledge and so much enthusiasm for her work. This is the quality that good management must have.

She wants to make NDP a 100 years old business, not only a lifelong career for her but a business lasts for generations.
(The answer was taken from a research on Mrs. Cheung business history)

How would you summarize the company’s financial status? How does it reflect the business development goals and strategies employed by Mrs. Cheung?

While trying to analyze a company’s financial status, we have to take a look on three main statements:
Balance sheet statement – Cash flow statement – Income statement

| | 2011 | 2012 | 2013 | Rate of Change | | Liquidity Ratio | Current Ratio | 1.312961 | 1.014966 | 1.277426 | -3% | Ability of the firm to pay its short term obligations | | Quick Ratio | 0.993251 | 0.71159 | 1.0084 | 2% | | | Returns | | -0.22696 | 0.258589 | | | | | | | | | | Assets Management Ratios | Inv. Turn Over | 9.53362 | 6.475214 | 7.604922 | -20% | Utilization of the firm's Assets | | Days of sales outstanding DSO | 75.68459 | 68.40927 | 94.96364 | 25% | | | Fixed Assets TO | 0.603698 | 0.615068 | 0.618176 | 2% | | | Tot. Assets TO | 0.479107 | 0.466742 | 0.446022 | -7% | | | | | | | | | Debt Management Ratio | Debt Ratio | 0.595293 | 0.629784 | 0.646398 | 9% | Ability to pay Debt servicing | | Times Interest Earrns TIE | 5.837338 | 2.738626 | 2.719284 | -53% | |

Is NDP in troubles? How would your answer differ if you were an existing...

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